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3. Critically analyze major strategies and programmes related to rural social development in India.
Ans: Strategies and programs for rural development
The rural economy is an integral part of the overall Indian economy. As majority of the poor reside in the rural areas, the prime goal of rural
development is to improve the quality of life of the rural people by alleviating poverty through the instrument of self-employment and wage
employment programmes, by providing community infrastructure facilities such as drinking water, electricity, road connectivity, health facilities,
rural housing and education and promoting decentralization of powers to strengthen the Panchayati raj institutions etc. The various strategies and
programs of the Government for rural development are discussed below:
Integrated Rural Development Program (IRDP): First introduced in 1978-79, IRDP has provided assistance to rural poor in the form of subsidy and
bank credit for productive employment opportunities through successive plan periods. Subsequently, Training of Rural Youth for Self Employment
(TRYSEM), Development of Women and Children in Rural Areas (DWCRA), Supply of Improved Tool Kits to Rural Artisans (SITRA) and Ganga Kalyan
Yojana (GKY) were introduced as sub-programs of IRDP to take care of the specific needs of the rural population.
Wage Employment Programs: Anti-poverty strategies, like assistance to the rural poor families to bring them above the poverty line by ensuring
appreciable sustained level of income through the process of social mobilization, training and capacity building. Wage Employment Programs have
sought to achieve multiple objectives. They not only provide employment opportunities during lean agricultural seasons but also in times of floods,
droughts and other natural calamities. They create rural infrastructure which supports further economic activity. It encompasses Swarnjayanti
Gram Swarozgar Yojana (SGSY), Sampoorna Grameen Rozgar Yojana (SGRY) and National Rural Employment Guarantee Act (NREGA) etc. NREGA is
an act of parliament. It is not merely a scheme or policy. It aims at enhancing the livelihood security of the people in rural areas by guaranteeing
hundred days of wage employment in a financial year, to a rural household whose members volunteer to do unskilled manual work. The objective
of the Act is to create durable assets and strengthen the livelihood resource base of the rural poor.
Employment Assurance Scheme (EAS): EAS was launched in October 1993 covering 1,778 drought-prone, desert, tribal and hill area blocks. It was
later extended to all the blocks in 1997-98. The EAS was designed to provide employment in the form of manual work in the lean agricultural
season. The works taken up under the program were expected to lead to the creation of durable economic and social infrastructure and address
the felt-needs of the people.
Food for Work Program: The Food for Work program was started in 2000-01 as a component of the EAS in eight notified drought-affected states of
Chattisgarh, Gujarat, Himachal Pradesh, Madhya Pradesh, Orissa, Rajasthan, Maharastra and Uttaranchal. The program aims at food provision
through wage employment. Food grains are supplied to states free of cost. However, lifting of food grains for the scheme from Food Corporation of
India (FCI) godowns has been slow.
Rural Housing: Initiated in 1985-86, the IAY is the core program for providing free housing to families in rural areas. It targets scheduled castes
(SCs)/scheduled tribes (STs), households and freed bonded laborers. The rural housing program has certainly enabled many BPL families to acquire
pucca houses. The coverage of the beneficiaries is limited given the resource constraints. The Samagra Awas Yojana (SAY) was taken up in 25 blocks
to ensure convergence of housing, provision of safe drinking water, sanitation and common drainage facilities. The Housing and Urban
Development Corporation (HUDCO) has extended its activities to the rural areas, providing loans at a concessional rate of interest to economically

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weaker sections and low-income group households for construction of houses.

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Social Security Programs: Democratic decentralization and centrally supported Social Assistance Programs were two major initiatives of the
government in the 1990s. The National Social Assistance Program (NSAP), launched in August 1995 marks a significant step towards fulfillment of

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the Directive Principles of State Policy. The NSAP has three components: a) National Old Age Pension Scheme (NOAPS); b) National Family Benefit
Scheme (NFBS); c) National Maternity Benefit Scheme (NMBS). The NSAP is a centrally-sponsored program that aims at ensuring a minimum
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national standard of social assistance over and above the assistance that states provide from their own resources. The NOAPS provides a monthly
pension of Rs. 75 to destitute BPL persons above the age of 65. The NFBS is a scheme for BPL families who are given Rs. 10,000 in the event of the
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death of the breadwinner. The NMBS provides Rs. 500 to support nutritional intake for pregnant women. In addition to NSAP, the Annapurna
scheme was launched from 1st April 2000 to provide food security to senior citizens who were eligible for pension under NOAPS but could not
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receive it due to budget constraints.

Land Reforms: In an agro-based economy, the structure of land ownership is central to the wellbeing of the people. The government has strived to
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change the ownership pattern of cultivable land, the abolition of intermediaries, the abolition of zamindari, ceiling laws, security of tenure to
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tenants, consolidation of land holdings and banning of tenancy are a few measures undertaken. Furthermore, a land record management system is
a pre-condition for an effective land reform program. In 1987-88, a centrally-sponsored scheme for Strengthening of Revenue Administration and
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Updating of Land Records (SRA & ULR) was introduced in Orissa and Bihar.
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4. Explain important features of Human Development and Human Poverty Index.

Ans: The HDI was created to emphasize that people and their capabilities should be the ultimate criteria for assessing the development of a
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country, not economic growth alone. The HDI can also be used to question national policy choices, asking how two countries with the same level of
GNI per capita can end up with different human development outcomes. These contrasts can stimulate debate about government policy priorities.
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The Human Development Index (HDI) is a summary measure of average achievement in key dimensions of human development: a long and healthy
life, being knowledgeable and have a decent standard of living. The HDI is the geometric mean of normalized indices for each of the three
dimensions.
The health dimension is assessed by life expectancy at birth, the education dimension is measured by mean of years of schooling for adults aged 25
years and more and expected years of schooling for children of school entering age. The standard of living dimension is measured by gross national
income per capita. The HDI uses the logarithm of income, to reflect the diminishing importance of income with increasing GNI. The scores for the
three HDI dimension indices are then aggregated into a composite index using geometric mean.
The HDI simplifies and captures only part of what human development entails. It does not reflect on inequalities, poverty, human security,
empowerment, etc. The HDRO offers the other composite indices as broader proxy on some of the key issues of human development, inequality,
gender disparity and human poverty.

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A fuller picture of a country's level of human development requires analysis of other indicators and information presented in the statistical annex
of the report.

The HDI is essentially a summary measurement of basic achievement levels in fundamental dimensions of human development. The computed HDI
of a country is a geometric mean of normalized indexes of each of the life aspects that are examined knowledge and understanding, a long and
healthy life, and an acceptable standard of living.
The health aspect of the HDI is measured by the life expectancy, as calculated at time of birth, in each country. Education is measured on two
levels: the mean years of schooling for residents of a country and the expected years of schooling that a child has at the average age for starting
school. The metric chosen to represent standard of living is GNI per capita based on purchasing power parity (PPP), a common metric used to
reflect average income.
The HDI is a simplification and an admittedly limited evaluation of human development. The HDI does not specifically reflect quality of life factors,
such as empowerment movements or overall feelings of security. In recognition of these facts, the Human Development Report Office (HDRO)
provides additional composite indices to evaluate other life aspects, including inequality issues such as gender disparity or racial inequality.
Examination and evaluation of a country's HDI is best done in concert with examining these and other factors, such as the country's rate of
economic growth, expansion of employment opportunities and the success of initiatives undertaken to improve the overall quality of life within a
country.

5. Describe important features of agricultural welfare programmes in India since independence.

Ans: On the eve of Independence in 1947, Indian agriculture was characterized by feudal land relations and primitive technology, and the resultant
low productivity per hectare. As a consequence, rural India presented a picture of mass poverty and widespread unemployment and under-
employment. Therefore, the first task of the Government in the immediate post-Independence period was to initiate growth process in agriculture
on modern lines. Modernization of agriculture was required both in terms of technological and institutional changes. The Mid-term Appraisal of the

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Tenth Five Year Plan (2002-07) drew attention to the loss of dynamism in agriculture and allied sectors after the mid-1990s.

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Hence, various policy initiatives have been taken in recent years to promote the agricultural sector. These have included the following: (a) National
Agriculture Policy, 2000, (b) Vishesh Krishi Upaj Yojana, 2004, (c) National Horticulture Mission, 2005, (d) National Policy for Farmers, 2007, (e)

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Comprehensive District Agriculture Plan, 2007, (f) Rashtriya Krishi Vikas Yojana, 2007 and (g) National Food Security Mission, 2007. The impulses of
economic reforms have been relatively less in scope and depth in the agricultural sector. Reforms in this sector were introduced only towards the
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end of the 1990s. These have included, inter alia, the following: (a) partial decontrol of fertiliser prices, (b) removal of bottlenecks in agricultural
marketing, (c) relaxation of restrictions under the Essential Commodities Act, 1955 and (d) introduction of forward trading in important commercial
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crops.
Similarly, various schemes/programmes have been launched for rural development including the following: (a) Indira Awaas Yojana, 1986, (b) Rural
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Infrastructure Development Fund, 1996, (c) Swarnjayanti Gram Swarozgar Yojana, 1999, (d) Total Sanitation Campaign, 1999, (e) Pradhan Mantri
Gram Sadak Yojana, 2000, (f) National Nutrition Mission, 2001, (g) National Rural Employment Guarantee Act, 2005, (h) National Rural Health
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Mission, 2005, (i) Rajiv Gandhi Grameen Vidyutikaran Yojana, 2005, (j) Bharat Nirman, 2005 and (k) Prime Minister Employment Generation
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Programme, 2008.
The present work traces developments in Indian agriculture and transformation of rural India during the post-Independence period. It explains the
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key reform measures undertaken for the modernization of agriculture and raising the standard of living of the rural population. Part I of the book,
containing 15 chapters, provides a detailed description of the various aspects of agricultural development in India since Independence in 1947. Part
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II contains 11 chapters which deal with various programmes/schemes to improve the quality of life of the rural masses. Part III provides year-wise
review of agricultural developments in India, covering the period 1947-48 to 2008-09. Part IV consists of appendices which provide relevant
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material on different aspects of Indian agriculture and rural development. Part V contains glossary of agricultural terms. Part VI contains time-series
data (1950-51 to 2007-08) on Indian agriculture.
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6. Explain major current programmes of rural development in India.

Ans: Major current programmes of rural development in India
Community Develpoment Programme (CDP)
Set up in : 1952
Over-all development of rural areas with people's participation.
Drought Prone Areas Programme (DPAP)
Set up in : 1973-74
To minimise the adverse effects of drought on production of crops and livestock and productivity of land, water and human resources
ultimately leading to drought proofing of the affected areas.

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Twenty Point Programme
Set up in : 1975
Poverty eradication and raising the standard of living
Desert Development Programme (DDP)
Set up in : 1977-78
To mitigate the adverse effects of desertification.
National Fund for Rural Development (NFRD)
Set up in : 1984
To grant 100% tax rebate to donors and also to provide financial assistance for rural development projects.
Council for Advancement of People's Actions and Rural Technology (CAPART)
Set up in : 1986
To provide assistance for rural prosperity.
Integrated Wasteland Development Programme (IWDP)
Set up in : 1989-90
The development of wasteland and degraded lands
District Rural Development Agency (DRDA)
Set up in : 1993
To provide financial assistance for rural development.
Member of Parliament Local Area Development Programme (MPLADP)
Set up in : 1993
It provides 2 crore to each MP to undertake development activities in its constituency. The amount has been raised to Rs. 5 crore from
2011.
Total Sanitation Campaign (TSC)
Set up in : 1999
It follows a community led and people centred approach and places emphasis on Information, Communication and Education (ICE) for
demand generation of sanitation facilities.
Indira Awas Yojana (IAY)
Set up in : 1999
The Indira Awas Yojana (IAY) addresses housing shortage as an important component of poverty alleviation in rural India.

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The cost is shared by the Centre and State in the ratio of 75:25. 75% weightage is given to housing shortage and 25% weight-age to the

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poverty ratios prescribed by the Planning Commission for state level allocations.
Under this yojana, houses are invariably allotted in the name of women.
Annapurna Scheme
Set up in : 2000 gm 52
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To indigent senior citizens of 59 years of age or above, who are not getting pension under National Old Age Pension Scheme are covered.
10 kg of foodgrains per person per month are supplied free of cost under this scheme.
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Pradhan Mantri Gram Sadak Yojana (PMGSY)

Set up in : 2000
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To line all villages with pakka road having population of 500 and above in genearl areas and 250 and above in tribal and general areas. All
weather roads.
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Valmiki Ambedkar Awas Yojana (VAAY)

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Set up in : 2001
Facilitates construction and upgradation of dwelling units for slum dwellers.
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R5`; Nirmal Gram Puraskar (NGP)

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Set up in : 2003
It is an incentive scheme to encourage PRIs to take up sanitation promotion.
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Rajiv Gandhi Gramin Vidyutikaran Yojana (RGGVY)

Set up in : 2005
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Aims at providing electricity in all villiages and habitations and access to electricity to all rural households.
Connections to BPL families are given free of cost. 90% cost of the scheme is released as grant, where 10% as loan.
For creation of villiage electrification infrastructure, first priority is given to unelectrified villiages.
Preference for electrification is given to Dalit Bastis, Tribal settlements and habitations of weaker sections.
Affordable Housing in Partnership (AHIP) (be a part of JNNURM)
Set up in : 2009
Aims at constructing one million houses for the EWS / LIG / MIG with at least 25% for EWS category. Seeks to operationalise National
Habitat Policy 2007.
National Rural Drinking Water Programme (NRDWP)
Set up in : 2009
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This programme's instrument is Accelerated Rural Water Supply Programme (ARWSP) under implementation since 1972-73, which is
funded on a 50% matching share basis between the Government of India and the state Government.
The ARWSP has been modified as National Rural Drinking Water Programme (NRDWP) in 2009-10 with major emphasis is on ensuring
sustainability in terms of portability, adequacy, affordability and equity by adopting decentralized approach.
Rajiv Awas Yojana (RAY)
Set up in : 2010
It aims at 'slum-free' India in next five years. It is for urban areas.
Mahatma Gandhi Rural Employment Guarantee Act (MGNREGA, lanuched on 2nd February, 2006)
The National Rural Employment Guarantee Act (NREGA) 2005envisages securing the livelihood of people in rural areas by guaranteeing
100 days of employment in a financial year to a rural household.
The main provisions of the Act are
o Employment to be given within 15 days of applicaiton for work.
o If employment is not provided within 15 days, daily unemployment allowance in cash has to be paid.
o Employment within 5 km radius, else extra wages to be paid.
o Atleast one-third beneficiaries have to be women.
o Gram Sabha will recommend works.
o Gram Panchayat to execute atleast 50% of works.
o PRIs have a principal role in planning and implementation.
o Grievance redressal mechanism to be put in place for ensuring a responsive implementation.
Jawaharlal Nehru National Urban Renewal Mission (JNNURM launched on 3rd December 2005)
The aim of the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) is to encourage reforms and fast track planned development
of identified cities.
The duration of the Mission is seven years beginning from the year 2005-06 to 2012-13
The mission has two sub-missions. One is BSUP (Basic Services to Urban Poor) and the other is UIG (Urban Infrastructure and
Governance).
The JNNURM has now been extended to 65 cities from the previous 63 cities.

7. Describe important schemes for the empowerment of women in India.

Ans: There are number of schemes running under the women empowerment mission:-
Poverty Alleviation and Economic Empowerment of Women

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1. Schemes of Department of Animal Husbandry Dairying Fisheries

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2. Scheme on Development of Inland Fisheries and Aquaculture
3. Scheme on Development of Marine Fisheries, Infrastructure and Post harvest Operations
4. Scheme on Fisheries Training and Extension
5. Assistance to Cooperatives gm 52
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6. National Bamboo Mission
7. Central Poultry Development Organisation
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8. Development of Commercial Horticulture through Production and Post-Harvest Management

9. Promotion and Strengthening of Agricultural Mechanization through Training, Testing & Demonstration
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10. Gramin Bhandaran Yojna

11. Capacity Building to enhance Competitiveness of Indian Agriculture and Registration of Organic Products
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12. Technology Development and Transfer for Promotion of Horticulture

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13. Marketing Assistance Scheme

14. Scheme of Support to Voluntary Agencies for Adult Education and Skill Development
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15. Scheme of Fund for Regeneration of Traditional Industries (SFURTI)

16. Performance & Credit Rating Scheme for Small Industries
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17. Entrepreneurship Development Institutions (EDIs) Scheme

18. National Award Scheme/ Guidelines [Launched by Ministry of Micro, Small & Medium Enterprise (MSME)]
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19. Credit Linked Capital Subsidy Scheme (CLCSS) for Technology Upgradation of the Small Scale Industries
20. Management Training Programs
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21. Scheme For Market Development Assistance For MSME Exporters

22. Credit Guarantee Cover Fund Scheme for Small Industries
23. Rajiv Gandhi Udyami Mitra Yojana (RGUMY)
24. Raw Material Assistance Scheme
25. Bamboo Cultivation
26. Organic Farming
27. Swarnajayanti Gram Swarozgar Yojana (SGSY)
28. Mushroom Farming
29. Scheme of Financial Assistance for Preparing Young Professional in Rural Areas
30. Mahatma Gandhi National Rural Employment Guarantee Scheme
31. Pottery Technology

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32. Technopreneur Promotion Program
33. Consultancy Promotion Program
34. Technology Development & Utilization Program for Women
35. Industrial R&D Promotion Program(IRDPP)
36. National Backward Classes Finance and Development Corporation
37. National Scheduled Castes Finance & Development Corporation
38. Marketing and Export Promotion Scheme
39. Scheme for Working Women Hostel
40. Grant in Aid Scheme Export
41. Diversified Handloom Development Scheme (DHDS)
42. Grant in Aid Scheme Ambedkar Hastshilp Vikas Yojna
43. Jute Manufactures Development Council Schemes
44. Scheme for Integrated Textile Parks
45. Grant in Aid Scheme HRD Scheme
46. Technology Upgradation Fund Scheme
47. Technology Upgradation Fund Scheme (Handloom Sector)
48. Dairy/Poultry Venture Capital Fund
49. Targeted Public Distribution System (TPDS)
50. Antyodaya Anna Yojna (AAY)
51. Old and Infirm Persons Annapurna
52. National Iodine Deficiency Disorders Control Program (NIDDCP)
53. Nutrition Education and Extension
54. Rashtriya Swasthya Bima Yojana(RSBY)
55. Total Sanitation Campaign (TSC)
56. National Rural Drinking Water Program
57. Assistance to Cooperatives Scheme
58. Strengthening Infrastructure for Quality & Clean Milk Production
The all above schemes are indirectly influencing the women workers and their economic condition. These schemes basically give stress on the
individual training and entrepreneurship. They also provide employment to the people through various means. So these schemes provide
supplements and food items to poor families, hence playing a pivotal role in women empowerment.
Rajiv Gandhi National Crche Scheme

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Working women needs support in terms of quality, substitute, care for their young children while they are at work. This scheme provides

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crche and day care facilities to those working womens and poor womens. This scheme comes under the central social welfare board.

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Short Stay Home For Women and Girls (SSH)

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The scheme is meant to provide temporary accommodation, maintenance and rehabilitative services to women and girls rendered homeless
due to family discord, crime, violence, mental stress, social ostracism or are being forced into prostitution.
Mid Day Meal
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This scheme provides a post of bhojan mata in every primary and secondary school who make the food for school children.
Assistance to States for Feed and Fodder Development
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The scheme provides central aid and assistance to states to supplement their efforts in feed and fodder development sector. This scheme
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was implemented from April 2005. Under this scheme women worker gets aids for the feed and fodder.
Rajiv Gandhi Scheme for Empowerment of Adolescent Girls (RGSEAG) or SABLA
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It is a centrally sponsored scheme aimed at all-round development of adolescent girls. It aims at making the girls self-reliant by improving
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their health and nutrition status, promoting awareness about health, hygiene, nutrition, adolescent reproductive and sexual health, family
and child care and facilitating access to public services through various interventions such as guidance and counseling and vocational
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training. It also aims towards mainstreaming out-of-school adolescent girls into formal/non-formal education.
STEP (Support to Training and Employment Program for Women)
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In 1986-87 with the aim of upgrading skills of women for self and wage employment the government of India launched this scheme. The
target group includes the marginalized asset less rural women and urban poor. Special focus is on identified focal districts in which women
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are particularly disadvantaged. The project duration is for 5 years with beneficiaries ranging from 200-10000 and a maximum per capita cost
of Rs 16000. The funds are directly released to different NGOs and not to the State Governments.
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Social Empowerment and Education

-Elementary Education
-Secondary Education
-Vocationalization of Secondary Education
-Adult Education
-Higher and Technical Education
-Nutrition Education and Extension
-Sarva Shiksha Abhiyan
These schemes are basically for the purpose of providing educational facilities to the women. Because education play a very important role when it
comes to any sort of empowerment and specially women empowerment.

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Health & Nutrition
-Integrated Child Development Scheme
-Reproductive & Child Health Program, Ph.II (RCH II)
-National Rural Health Mission
-Janani Suraksha Yojana
-Integrated Child Protection Scheme
-Food Security Mission
-National Iodine Deficiency Disorders Control Program (NIDDCP)
-Indira Gandhi Matritva Sahyog Yojana (IGMSY)
It is a conditional cash transfer scheme that targets pregnant and lactating women 19 years of age and older who have had two children. Its
goal is to partly compensate them for wage-loss during childbirth and childcare and to provide conditions for safe delivery and good nutrition
and feeding practices. It is a pilot project launched in year 2010
Kishori Shakti Yogana
This schemes aims to improve the nutritional, health and development status of adolescent girls, promote awareness of health, hygiene,
nutrition and family care, link them to opportunities for learning life skills, going back to school, help them gain a better understanding of their
social environment and take initiatives to become productive members of the society.
Empowerment of Vulnerable and Marginalized Groups and Women in Difficult Circumstances
- Schemes of National Scheduled Tribes Finance and development Corporation (NSTFDC)
- Integrated Child Development Scheme
- Integrated Child Protection Scheme
- Swarnjayanti Gram Swarozgar Yojana
- Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)
- Swadhar
The scheme envisions a supportive institutional framework for woman victim of difficult circumstances so that she could lead her life with
dignity and conviction. It envisages that shelter, food, clothing, and health as well as economic and social security are assured for such women.
It also envisions that the special needs of these women are properly taken care of and under no circumstances they should be left unattended
or abandoned which could lead to their exploitation and desolation.
Ujjawala
This schemes aims to prevent trafficking of women and children for commercial sexual exploitation through social mobilization and
involvement of local communities, awareness generation program generate public discourse through workshops/seminars and such events and
any other innovative activity. It also facilitate rescue of victims from the place of their exploitation and place them in safe custody. It provides

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rehabilitation services both immediate and long-term to the victims by providing basic amenities/needs such as shelter, food, clothing, medical

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treatment including counseling, legal aid and guidance and vocational training.
Indira Awaas Yojana (IAY)

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This scheme provides shelter to the poor community. Right now implemented in every state and providing homes to the poor.
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8. Explain emerging patterns of the rural society in India.
Ans: The hinterlands in India consist of about 650,000 villages. These villages are inhabited by about 850 million consumers making up for about 70
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per cent of population and contributing around half of the country's Gross Domestic Product (GDP). Consumption patterns in these rural areas are
gradually changing to increasingly resemble the consumption patterns of urban areas. Some of India's largest consumer companies serve one-third
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of their consumers from rural India. Owing to a favorable changing consumption trend as well as the potential size of the market, rural India
provides a large and attractive investment opportunity for private companies.
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Market size
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Indias per capita GDP in rural regions has grown at a Compound Annual Growth Rate (CAGR) of 6.2 per cent since 2000. The Fast Moving
Consumer Goods (FMCG) sector in rural and semi-urban India is expected to cross US$ 20 billion mark by 2018 and reach US$ 100 billion by 2025@.
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Recent Developments
Following are some of the major investments and developments in the Indian rural sector.
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The Ministry of New and Renewable Energy (MNRE) has an annual target of setting up one lakh family size biogas plants to the states and union
territories for FY 2016-17.
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Indian Institute of Technology-Madras (IIT-M) has entered into a three-year partnership with Nokia Networks to create technology solutions which
will enhance broadband connectivity in rural India.
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The United Economic Forum (UEF), an organisation that works to improve socio-economic status of the minority community in India, has signed a
Memorandum of Understanding (MoU) with Indian Overseas Bank (IOB) for financing entrepreneurs from backward communities to set up
businesses in Tamil Nadu. As part of the agreement, entrepreneurs who have been chosen by the UEF, will get term loan / working capital
requirements from the bank. The UEF will appoint mentors to guide entrepreneurs for successful implementation of the project, with both IOB &
UEF periodically monitoring the progress of the project.
Tata Motors, India's biggest automobile company by revenues, plans to aggressively expand its network with a focus on rural markets. The
company is aiming to more than triple its network to 1,500 over the next three years from 460 now, making it the biggest such expansion by a
passenger vehicle maker in the country so far.
Bharti Airtel is applying for a payments bank licence and has involved Kotak Mahindra Bank as a potential investor in the venture, in a bid to tap
significant revenue opportunities from the Reserve Bank of India's financial inclusion initiative. Payments banks are meant to fan out into the rural,

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remote areas of the country, offering limited but critical services such as money transfers, loans and deposit collection. While banks have the
knowhow, telecom companies have the network, making it an ideal match.
Government Initiatives
The Government of India has planned various initiatives to provide and improve the infrastructure in rural areas which can have a multiplier effect
in increasing movements of goods, services and thereby improve earnings potential of rural areas subsequently improving consumption.
Mr Piyush Goyal, Minister of State (Independent Charge) for Power, Coal, New and Renewable Energy, has stated that the Government of India has
set a target to electrify all un-electrified villages in the country by the end of 2016. Between 15-21 August, 2016, the Government electrified 28
more villages under the Deen Dayal Upadhyayay Gram Jyoti Yojna (DDUGJY), bringing the tally to 10,079 villages which have been electrified till
date. Out of these electrified villages, 4 villages belong to Assam, 5 to Chhattisgarh, 3 to Jharkhand, 10 to Meghalaya and 6 to Rajasthan.
The Government of India plans to integrate villages with countrys economic mainstream by purchasing around 80,000 mini-buses, which will
connect over 125,000 villages to markets and thereby provide access to better job and education prospects.
The Union Budget 2016-17 proposed a slew of measures to improve agriculture and increase farmers welfare such as 2.85 million hectares to be
brought under irrigation, Rs 287,000 crore (US$ 42.8 billion) grant in aid to be given to gram panchayats and municipalities and 100 per cent village
electrification targeted by May 01, 2018.
Prime Minister Mr Narendra Modi has launched the National Rurban Mission with the aim of enabling cluster based development and creating
smart villages which will complement the smart cities initiative.
The Government of Gujarat plans to undertake several steps to promote micro, small and medium enterprises (MSMEs) in the state, including
setting up a separate department for this segment and providing dedicated industrial estates for MSMEs.
The Union Government plans to build 2.23 lakh km of roads in the rural areas and has proposed a total spending of Rs 27,000 crore (US$ 4.03
billion) until March 2017.
E-commerce players like Flipkart, Snapdeal, Infibeam and mobile wallet major Paytm have signed Memoranda of Understanding (MoUs) with the
government to reach rural areas by connecting with the governments common service centres (CSCs) being setup in villages as part of the Digital
India initiative.
With the increasing demand for skilled labour, the Indian government plans to train 500 million people by 2022, and is looking out for corporate
players and entrepreneurs to help in this venture. Corporate, government, and educational organisations are joining in the effort to train, educate
and produce skilled workers.
The Union Cabinet has cleared the Pradhan Mantri Krishi Sinchaee Yojana (PMKSY), with a proposed outlay of Rs 50,000 crore (US$ 7.45 billion)
spread over a period of five years starting from 2015-16. The scheme aims to provide irrigation to every village in India by converging various
ongoing irrigation schemes into a single focused irrigation programme. The Government of India aims to spend Rs 75,600 crore (US$ 11.27 billion)
to supply electricity through separate feeders for agricultural and domestic consumption in rural areas. This initiative is aimed at improving the
efficiency of electricity distribution and thereby providing uninterrupted power supply to rural regions of India.
To promote agriculture-based businesses, the Government of India has started A Scheme for Promotion of Innovation, Rural Industry and

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Entrepreneurship (ASPIRE). Under this scheme, a network of technology centres and incubation centres would be set up to accelerate

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entrepreneurship and to promote start-ups for innovation and entrepreneurship in agro-industry.
The Government of India plans to form a committee to study various innovations and submit their reports to the concerned Department or

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Ministry. The programme called the Nav Kalpana Kosh aims to improve rural areas at various levels, such as governance, agriculture and hygiene.
Road Ahead
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As is the trend with urban India, consumers in the rural regions are also expected to embrace online purchases over time and drive consumption
digitally. The rural regions are already well covered by basic telecommunication services and are now witnessing increasing penetration of
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computers and smartphones. Taking advantage of these developments, online portals are being viewed as key channels for companies trying to
enter and establish themselves in the rural market. The Internet has become a cost-effective means for a company looking to overcome
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geographical barriers and broaden its reach.

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